Measures to Increase Agricultural Productivity in India!

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Measures to Increase Agricultural Productivity in India!

(1) Institutional Reforms:

Institutional arrangements cover such measures as better agrarian relations introduced through land reforms, proper arrangements for adequate financing, and regulating the distribution of agricultural products, etc. While policies for strengthening the institutional structure for development of agriculture have been adopted and are in place, the key to their success lies in effective implementation-an aspect of which more concerted attention, than hitherto, needs to be given.

Another aspect of institutional reform is the need to improve the efficiency of delivery systems in rural development by empowering the institutions elected by the people. This would require devolution of functions, transfer of necessary resources and empowering the functionaries in discharging their administrative responsibilities.

(2) Technological Improvements:

Technological improvements in agriculture can be classified into two broad kinds: biological and mechanical.

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(a) Biological innovations usually refer to factors that raise land productivity and are, therefore, generally land-saving. Better seeds and the use of fertilisers in the right doses at the right time are useful instances.

(b) Mechanical innovations usually mean the use of more machinery like tractors that is labour- saving. In order to expedite these improvements, policies need to be so framed as to encourage and promote their adoption by designing suitable policies.

(3) Improving the, Returns to Fanners:

For this purpose, both

(a) price measures and

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(b) non-price measures need to be adopted.

(a) Price Measures Would Include:

(i) Raising procurement and support prices so as to improve the terms of trade of agriculture.

(ii) In regard to the dry land arid hilly areas, where only one crop can be grown-usually millets- the prices should be so fixed that the market forces would increase their demand generating more income for the growers.

(viii) Improving farm productivity by an approach where agri-business is operated like an industry. In this, the industry itself has to take initiative and arrange for the delivery of necessary inputs.

(4) Producer Incentives for Stimulating Growth:

The case for producer incentives for stimulating agricultural growth and adoption of new technology has been well argued in the literature on agricultural development. Such incentives as price supports, input subsidies, subsidised institutional credit, food subsidies, etc. are suggested for both stimulating growth and achieving certain welfare objective like regional and social equity.

In short, agricultural productivity is a function of a large number of determinants. An effective policy requires a holistic approach in which the various factors outlined above are integrated with a view to achieve the desired objective.